A fixed deposit is a financial tool where you invest your money at a fixed interest rate and an agreed time period. You earn a guaranteed interest income on your invested amount at these predetermined interest rate at very low risk. As fixed deposits are not market-linked, your amount and interest income are not affected by any market volatility. Therefore, a fixed deposit investment becomes an ideal option for those who want assured returns with minimum risk factor. Apart from this, there are several other benefits of fixed deposit. Here’s a deep dive into the benefits of fixed
From assured returns to loan against FD and more, here are some of the key benefits of FD in India:
As a fixed deposit is not market-linked, it is unaffected by any risks in the market. The interest rate offered while starting the fixed deposit investment stays the same throughout the tenor. An FD investment also lets you know what you can expect from your investment thus helping in financial planning. Therefore, a fixed deposit is one of the safest and assured ways to earn an interest income.
Almost everyone wishes to have savings to tend to their times of need. Having a fixed deposit instils that habit of putting some money aside. With great liquidity, investors also have the satisfaction of knowing that if they have to cater to any emergency expenses, they can take a loan against their FD or prematurely withdraw their FD. The penalty is negligible and some banks don’t even charge penalty for premature withdrawal.
Bank FDs in India have a cover of ₹5 lakh. It is provided by Deposit Insurance and Credit Guarantee Corporation (DICGC), which is a fully owned subsidiary of the Reserve Bank Of India (RBI). If a bank defaults, i.e., goes bankrupt and is unable to pay back the account holder’s savings or deposit amount, the account holder will get ₹5 lakh as compensation. Irrespective of your investment amount, even if it is less than the ₹5 lakh mark, you will still get the full coverage amount.
Almost every bank offers a tax saver fixed deposit which in turn helps in reducing the tax liability of the investor. You can claim a tax deduction of up to ₹1.5 lakh under Section 80C of the Income Tax Act of India, 1961. However, such tax saver FDs come with a lock-in period of 5 years. This means that you cannot prematurely withdraw the amount.
A senior citizen usually gets higher interest rates than a non-senior citizen investor. Most of the banks and NBFCs follow this and offer higher rates to senior citizens. An FD for senior citizens has interest rates around 0.25% higher than a non-senior citizen FD.
Instead of opting for other loan options with a higher rate of interest, you can easily take a loan against a fixed deposit to tend to any emergency expenses. A small percentage of the interest rate is charged over the applicable FD rate. This way you will not have to pay the hefty interest or lose out on FD interest rates.
Apart from all other benefits, a fixed deposit is also one of the simple investment tools. You just have to invest your money at once and then watch it grow over the set tenor. You do not need to constantly monitor your investment unlike equity funds and no market fluctuation will affect your returns.
Bajaj Finance FD on Finserv MARKETS offers one of the best interest rates available in the market. Bajaj Finance FD has lucrative interest rates up to 6.80%, which go as high as 7.60% for senior citizens. Non-senior citizens who invest online also enjoy an additional 0.10% interest rate. Therefore, you can earn assured and more returns with Bajaj Finance FD.
As mentioned above, senior citizens get an additional 0.25% of interest rate than non-senior citizen investors. This additional tax benefit is above the regular FD interest rates that are as high as 6.80%. Therefore, a senior citizen can get an interest rate of 7.60% with Bajaj Finance FD.
Bajaj Finance fixed deposit offers a monthly savings option through a Systematic Deposit Plan (SDP). With an SDP, you can make small monthly deposits and the interest rates prevailing on the date of each deposit gets applicable to that particular deposit. The schemes under the Systematic Deposit Plan are the Monthly Maturity Scheme and Single Maturity Scheme, which can be availed by the investors as per their requirements.
In the Monthly Maturity Scheme, you get your maturity income on a monthly basis. You can opt for a flexible tenor ranging from 1 year to 5 years and choose to make 6-48 deposits. On the other hand, with the Single Maturity Scheme, you get your maturity income amounts from all deposits in a single day. You can choose between a tenor of 19 months to 60 months and make 6-47 deposits.
High Stability and Credibility
The best way to know if your invested amount is safe with a financier is to check its credit rating from reputed rating agencies. A higher credit rating ensures that you will get your returns regularly and without any hassle or difficulties on the part of the issuer. Bajaj Finance FD is one of the highly-rated investments with CRISIL’s FAAA/Stable rating and ICRA’s MAAA (Stable) rating. This offers a higher safety to your invested capital.
Bajaj Finance FD on Finserv MARKETS offers a flexible tenor ranging from 12 months to 60 months. This means that you can invest your amount for a period ranging anywhere between 1 year to 5 years. It helps in your liquidity needs and ensures a higher cash inflow.
With the online fixed deposit calculator of Bajaj Finance FD, you can pre-plan your investment in an efficient manner. It will help you in estimating your interest income, maturity amount and other details of your fixed deposit plan. You can compare various amounts at different tenors before your actual investment.
The minimum deposit amount required to start a fixed deposit with Bajaj Finance is as low as ₹25,000. With such a low amount, you can start your investment anytime without having to worry about a larger corpus. You can still earn better interest rates at such a low amount.
Starting a Bajaj Finance FD is an easy and paperless process. You won’t have to submit lengthy documents or wait in queues to start your fixed deposit investment as it can be done in an easy online application process that saves your time. It is an end to end online application process where you can open an FD within a few minutes. Another benefit of investing online is that non-senior citizens get an additional interest rate benefit of 0.10% per annum by investing online in Bajaj Finance FD.
In case of emergency financial expenses, you won’t have to break your FD prematurely. You can take a loan against fixed deposit investment and avoid losing out on interest. You can cater to your emergency expenses by taking a loan against 75% of your FD value.
While filling your fixed deposit application form, you can choose to renew your FD. If you choose this option, there will be no need to fill out an additional form during the maturity period.
With such attractive benefits of a fixed deposit account, you can earn assured returns with Bajaj Finance FD. Lucrative interest rates and great safety makes Bajaj Finance FD one of the best options for a fixed deposit investment. You can invest your amount for a flexible tenor ranging from 12 to 60 months. All such benefits can be availed in a simple application process, which lets you start your fixed deposit investment online within few minutes. Start your Bajaj Finance FD on Finserv MARKETS now and watch your money grow.
One of the major benefits of investing in a fixed deposit is that you earn an assured interest income in a safe market environment. You can also avail tax benefits and take a loan against your fixed deposit. Moreover, senior citizens also enjoy additional interest rates on their fixed deposit investments.
Bajaj Finance FD is one of the best fixed deposit investment options in India as it offers lucrative interest rates of up to 7.35% in a safe market environment.
Fixed deposit is an ideal option for those who want to grow their money steadily in a safe and low-risk manner.
Deposit Insurance and Credit Guarantee Corporation (DICGC) gives a compensation cover of ₹5 lakh for a fixed deposit investment.